25.2 C
New York

DocuSign (DOCU) earnings Q1 2023


Dan Springer, chief executive officer at DocuSign.

David Paul Morris | Bloomberg | Getty Images

DocuSign shares fell as much as 24% in prolonged trading on Thursday after the electronic signature software vendor reported weaker-than-expected earnings in its fiscal first quarter.

Here’s how the corporate did:

  • Earnings: 38 cents per share, adjusted, vs. 46 cents per share as expected by analysts, in line with Refinitiv.
  • Revenue: $588.7 million, vs. $581.8 million as expected by analysts, in line with Refinitiv.

For the quarter ended April 30, DocuSign’s revenue increased 25% from the year-earlier period, in line with a statement.

But as investors shift away from a deal with growth to profitability, DocuSign’s miss on earnings overshadowed that revenue gain. The stock is down 43% this yr as of Thursday’s close, tumbling alongside the remaining of the cloud software sector. On Thursday, the corporate reported its net loss widened to $27.4 million from $8.3 million through the year-earlier period.

DocuSign experienced strong growth through the early months of the pandemic with the rise in online transactions. The pace of that business has slowed in recent quarters, and after starting to regulate its sales approach to focus more on drumming up demand, it’s now working to repair go-to-market challenges, CEO Dan Springer said on a conference call with analysts.

The corporate won’t be reducing headcount, however it is lowering the number of individuals it plans to rent “to appropriately balance growth and profitability,” Springer said, noting that the Great Resignation trend of individuals leaving jobs has brought turnover in the corporate’s sales organization.

The deteriorating macroeconomic environment also presented challenges, said Cynthia Gaylor, DocuSign’s chief financial officer. In Europe, following the emergence of the war in Ukraine, some deals stalled or were delayed due to economic uncertainty, Springer said.

As well as, the corporate’s expansion rate, reflecting the pace of existing customer spending, has slowed, Gaylor said.

For the second quarter, DocuSign called for revenue of $600 million to $604 million. The center of the range, at $602 million, was just above the Refinitiv consensus of $601.7 million.

And for all of 2023, DocuSign sees $2.47 billion to $2.48 billion in revenue, in comparison with the $2.479 billion Refinitiv consensus.

Earlier this week DocuSign announced an expansion of its partnership with Microsoft.

WATCH: DocuSign has potential for growth with Microsoft deal, says Laffer Tengler’s Nancy Tengler

Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles


Recent articles